Applied Materials (AMAT - Get Report) was lower after hours even as the producer of materials-engineering solutions used to make chips and displays reported fiscal-third-quarter revenue and adjusted net income per share exceeded analyst estimates.

The stock was trading after hours down 1.2%, having closed the regular session up 1% at $47.16.

For the quarter ended July 28, the Santa Clara, Calif., company reported GAAP earnings of 61 cents a share, compared with $1.01 in the year-earlier quarter. On an adjusted basis, the company earned 74 cents a share against $1.04.

Sales declined 14% to $3.56 billion from $4.16 billion.

Analysts surveyed by FactSet were looking for adjusted profit of 70 cents a share on revenue of $3.53 billion.

Gary Dickerson, president and CEO, in a statement called the results "solid" in a "market environment that remains challenging for the time being."

For the fiscal fourth quarter, Applied Materials estimates earnings will come in at an adjusted 72 cents to 80 cents a share on net sales ranging $3.54 billion to $3.84 billion.

The FactSet-derived survey was looking for profit of 76 cents a share on sales of $3.66 billion.

More from Earnings

UAW Vice President Terry Dittes sent a letter to union members Saturday saying that the union will not extend the current 2015 collective bargaining agreement, but will work without a contract 'until a course of action is decided' by the UAW international executive board and the UAW-GM national council.

GM and the United Auto Workers continue to haggle at the negotiation table over everything from pay and temporary workers to health care costs, but with the union's four-year current contract set to expire at midnight, the auto industry could see its first major walkout in more than a decade.